Pakistan stock market is one of the top stock markets of Asia.It is growing with a healthy rate for last 3 years. Karachi stock exchange-100 indexposted of 1836 points gain during the last week.It is its highest gain since July 2013. Pakistan stock market is currently providing very healthy returns for the domestic as well as foreign investors. Foreign investors made net foreign portfolio investment of $ 19.6 million in the last week. Market analysts are feeling upbeat about the prospects of the market and advising traders to invest in the Pakistani market. They believe that Pakistani market is best alternative to big markets such as China and United States of America.Following are the 3 most important reasons for investing in the Pakistan stock market.
MSCI inclusion and rise in the Karachi stock exchange-100 index
MSCI emerging market index is a very important index as it carries indices of emerging economies like Brazil,Colombia,Peru,Morocco,Egypt,Turkey,Poland,Russia ,Chile and China etc.This market index provides very good opportunity for the investors to take advantage of the emerging markets. These markets provides large gains but also large risks of losses . MSCI indices is a very effective way of analyzing the combine performance of the emerging stock markets.
Karachi stock exchange-100 index climbed by 1836 points after the MSCI inclusion of the Pakistani stock market. MSCI is planning to include at least 27 Pakistani companies in the MSCI emerging markets index.The list of the companies includes blue chip companies like Muslim commercial bank,Habib bank Limited ,Fauji cements ,Pakistan Oil fields and Searle Co.So these companies offervery good opportunity for the investors to reap benefits from their investments.
Pakistan government is expecting foreign investment of approx 400-800 million within next one year. This is a very encouraging sign as it will improve the investment climate in the country .It will also create numerous opportunities for the domestic as well as foreign investors.
Top Asian stock market
According to the Bloomberg magazine,Pakistan stock market is currently dominating the Asian markets. Karachi stick exchange -100 index has posted 15 % gains in the current year and makes it best performing market in whole Asia.The gauge has also showed a 4.2 growth this month.
CPEC and Pakistan’s growing economy
Interest rates and inflation rates are at their lowest levels in the country. Interest rate is currently at 5.75 % and that is lowest in last 42 years. Inflation rate is also at very low level of 4.6 %.These two factors are really helping the growth of the economy and it is also helped in the improvement of theconsumer spending .Consumer spending has increased from8584834 RsMillion in 2015 from Rs 8286472 Million in 2014.
CPEC is also playing an important role in improving the economy of the country.It is one of the largest economic projects in the history of the country.It will bring colossal investment of $ 46 billion in next few years.It will help varioussectorsto grow in a very positive manner.Cement and construction sectors are two most important beneficiaries of this project. These two sectors provide employment to millions of people in the country.The positive affects of this projects are already showing as cement sector stocks are showing positive growth forlast one year.